Project on Marketing Strategy of Titan Watches

University Of Mumbai

Project Report On MARKETING STRATEGY OF TITAN WATCHES

In Partial Fulfillment for Bachelors of Management Studies (BMS)

Under The Guidance Of Prof. Deepa Makkad

Submitted By: Chaitrali Chaware Semester V T.Y.BMS (2012-2013)

Vishweshwar Education Society‟s Western College of Commerce & Business Management Sanpada, Navi

1

Vishweshar Education Society‟s Western College Commerce & Business Management Sanpada, Navi Mumbai

CERTIFICATE This is to certify that Mr. /Ms. ______________________________________________ of TY.BMS has undertaken and completed the project work titled _________________________________________ during the academic year ____________________ under the guidance of Mr. /Ms. ___________________ submitted on ____________ to This college in fulfillment for Bachelor of Management Studies (BMS) University of Mumbai.

Project Guide

BMS H.O.D

Principal

External Examiner Date:

2

DECLARATION

I, Chaitrali Ankush Chaware student of TYBMS, , Vishweshwar Education Society‟s Western College of Commerce & Business Management hereby declare that I have completed the project report on “Marketing Strategy of Titan Watches” in the academic year 2012-2013.The information submitted by me is true & original to the best of my knowledge.

Signature

3

ACKNOWLEDGEMENT

With great pleasure and a deep sense of gratitude I hereby acknowledge everyone who provided me with their help, assistance and sustained support without which, even if I have had done this work, it would not have been as it has turned out to be. Their enlightened feedbacks and directions can be sensed as the project moves on.

I am sincerely thankful to my project guide, prof. Deepa Makkad; who provided me with all the theoretical and practical inputs for my project. Without his thoughtful support this project would not have been completed.

4

INDEX

S.NO.

CONTENT

PAGE NO.

1

Introduction

8

2

Research Methodology

15

3

Industry Overview

17

4

Titan Watches : Brand Positioning Strategies

22

5

Titan Watches : Brand Repositioning Strategies

24

6

Company Profile

67

7

Data Collection & Survey Analysis

71

8

Data Interpretation

87

9

Conclusion

92

10

Suggestions & Recommendation

93

Questionnaire

94

Bibliography

97

5

EXECUTIVE SUMMARY Today, a wristwatch is considered as much of a status symbol as a device to tell time. In an age when cell phones and digital pagers display tiny quartz clocks, the mechanical wristwatch has slowly become less of an object of function and more a piece of modern culture. The Indian watch industry began in the year 1961 with the commissioning of the watch division of HMT. The first watch model manufactured by HMT was the Janata model in the year 1962. HMT was the leader in the watch market till the Tata‟s formed Titan Watches in association with Tamil Nadu Industrial Development Corporation in the year 1987. Titan was the first company to launch quartz watches in India. The Indian watch market is today of 40 million units, out of which 60% is in the unorganized sector in which the maximum number of watches are sold are below Rs.300. Quartz watches form two third of the organized sector and the rest is split between mechanical and digital watches. Even in the organized sector, three fourth of the sales by volume comes from watches that are priced below Rs.1000. Watch is one of the consumer durables whose replacement rate is very high. The replacement rate of watch is 33.8 %( Source: India market demographics report, 1998). This is also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is applicable after 6 years (Source: India market demographics report, 1998). So, due to high scrap rate, outdated models, and the shift from the mechanical watches to the quartz watches it is causing a very high replacement demand for watches. This along with the low penetration level represents the untapped market potential for watches in India. After liberalization of Indian economy in 1992 many international players have entered the Indian Watch market posing as competitive threat to the Indian companies. Lately Titan has tried to reposition its Brand to capture more segments of the watch market retaining the already served market segment. The strategy has been studied in deep during the project. Many brands and companies are constantly reinvigorating their businesses 6

and positioning them for growth. There is a constant need to innovate, reinvigorate, update, recalibrate, or just simply fend off the competition in an effort to better explain "why buy me." Brand positioning creates a specific place in the market for the brand and product offerings. It reaches a certain type of consumers and delivers benefits that meet the needs of several key target groups and user. The actual approach of a company or brand's positioning in the marketplace depends on how it communicates the benefits and product attributes to consumers and users. As a result, the brand positioning of a company and/or product seeks to further distance itself from competitors based on a host of items, but most notably on five key issues: Price, Quality, Product Attributes, Distribution, and Usage Occasions. In recent times, consumerism has undergone a sea change. Consumers today are well informed about the products, as compared to earlier times. Hence, the marketplace has become customer centric. Recognizing the importance of the customers in the business structure, companies have started effecting brand repositioning exercises on a regular basis. In the recent times, a major brand repositioning exercise has been planned by Titan Industries Ltd. in order to provide more to its customers. The company has first gone for change in logo and tagline. Then the communication strategy has been revamped to convey its new position. The present study consists of reviewing the positioning strategies of Titan watches. An analysis of repositioning strategies of Titan also forms part of the study. The main objective of the study is to find out whether the loyal consumers of titan watches are aware of the new positioning strategies of the company and how they perceive them. Primary and secondary sources of data have been made use of in the study. The first part of the project, i.e., analysis of brand repositioning strategies of Titan Company has been completed on the basis of secondary data. For this purpose, internet, journals, books, magazines and so on have been made use of. The second part of the project comprises of conducting a survey with the help of questionnaire. The survey is proposed to be conducted on a sample of 50 consumers who are loyal to Titan Company, selected through convenience sampling technique. The questionnaire consists of appropriate mix of open ended and closed ended questions. The data is presented using pie charts and bar diagrams. The conclusion part of the report would provide an insight of consumer awareness regarding brand repositioning strategies and their effectiveness in revamping the brand, Titan 7

CHAPTER 1: INTRODUCTION

1.1 THEORY & CONCEPT: "A business has two - and only two - basic functions: marketing and innovation." - Peter Drunker

The rapid pace of change and intense competitive pressure in today's marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position. In this context, brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion. The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand.

Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning. Biel, for example, has defined brand positioning as "building (or rebuilding) an image for a brand". The goal of positioning and repositioning strategies relates to the management of consumers' perceptions. However, positioning focuses on the creation of brand associations - consumers' perceptions of the attributes that differentiate the brand from competitive offers – while repositioning also implies managing existing brand associations. The unique challenge of a repositioning Strategy, thus, lies in rejuvenating the brand image to make it relevant in an evolving environment, while honoring the brand equity heritage.

Repositioning can be required as the market changes and new opportunities occur. Through repositioning the company can reach customers they not intended to reach in the first place. If a brand has been established at the market for some time and wish to change their image they can consider repositioning, although one of the hardest actions in marketing is to reposition a familiar brand.

According to Solomon, position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers

8

understanding of the position. During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made. The ones responsible for the repositioning have to evaluate why a reposition is necessary, and if the offer is the one who will change or just the brand name. There are several risk factors that have to be taken into consideration when preparation for a repositioning of the offering or the brand. During repositioning, the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence.

Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand. But, in some circumstances a repositioning is necessary to gain credibility if the brand is eroded. Whenever a reposition is in question it has to be of relevance from a customer perspective, is this achievable? Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company.

Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic. For example, while the soft drink brand, Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence, Levis' Jeans has been losing market share to newcomers such as The Gap, despite numerous campaigns designed to reposition the brand as trendy.

The strategic importance of brand repositioning in preserving and enhancing brand equity, coupled with the mixed results of repositioning attempts, underscores the need to develop a better understanding of the dynamics of brand repositioning. Specifically, questions of whether, when and how brands should be repositioned need to be addressed.

Research into brand repositioning is relevant not only to the development of brand management theory, but also extends to corporate strategy through an examination of corporate brands.

9

1.2 LITERATURE REVIEW:

The repositioning strategy is rolled out in three stages: introductory, elaboration and fortification stages. This involves the introduction of a new or a repositioned brand, seeking to underline the brand‟s value over others, and to broaden the brand proposition. It is truly tough to change the customer‟s perceived attitude towards a brand, and therefore the risk is great that the attempt to repositioning might be unsuccessful.

After rolling out the strategy, it is time to modify the proposition through update of the personality and through repositioning. There are benefits and risks with both of this segments and it is of great significance that they are truly evaluated when deciding the next step in the process.

Figure 1: Stages in brand strategy development

Establishing the

Selecting Appropriate Marketing Mix

Brand Proposition

Modifying the Proposition

Rolling Out the Strategy

-Repositioning

-Introductory Stage

-Updating the Personality

-Elaboration Stage -Fortification Stage

The implication with the term” repositioning” is that a company modifies something that is already present in the market and in the consumer‟s mind. The definition of repositioning changes different individuals and professions.

10

To view the different definitions and perceive a greater understanding about this concept, three examples of repositioning given by individuals in different professions is stated below:

“Repositioning is a change, principally about trigging the vision, mission and value in a new direction that is more suited for the brand in the future”. -Brand manager consultant “Principally, reposition concerns change the consumer‟s perception of the brand” -PR- consultant “Repositioning is built upon the change unique and differentiated associations with the brand in some kind of direction, it is about having a balance between the category party and differentiation when using reposition strategies” -Leading brand strategist

From these definitions, it is obvious that reposition is about moving something to a newer and hopefully to a more attractive and relevant position. The purpose of the movement differs with regards to what the company wants to achieve. A company might want to reach out to a larger target group, or be involved in several different positions at the market. There is also a visible relation between price and quantity aspects. When a company perceives the market as a demand curve, the purpose is to down stretch or up stretch in this curve. When moving down it is often spoken of as an expansion down wards, and when moving up and there is a need for reaching the premium segment and expand up wards.

The principle of repositioning: When striving towards a new position in the market, it is important to understand that consumer‟s minds are limited. People‟s minds select what to remember and it is therefore significant to convince the consumers with great argument. The market demand changes rapidly and therefore reposition can be necessary to meet these demands, newer and stronger arguments have to be established to convince them to stay as loyal customers.

11

As stated in the literature, repositioning is a very complicated matter and therefore there are no detailed theories or models. The aim with repositioning differ from person to person, and the only connection between all the different theories is that repositioning is moving something from somewhere towards a greater position at the market.

Corstjens and Doyle (1989) identified three types of repositioning strategies:

(1) Zero repositioning, which is not a repositioning at all since the firm maintains its initial Strategy in the face of a changing environment; (2) Gradual repositioning, where the firm performs incremental, continuous adjustments to its positioning strategy to reflect the evolution of its environment; and (3) Radical repositioning that corresponds to a discontinuous shift towards a new target market and/or a new competitive advantage.

After examining the repositioning of several brands from the Indian market, the following types of repositioning have been identified. These are: 1. Increasing relevance to the consumer 2. Increasing occasions for use 3. Making the brand serious 4. Falling sales 5. Bringing in new customers 6. Making the brand contemporary 7. Differentiate from other brands 8. Changed marketing conditions

It is not always that these nine categories are mutually exclusive. Often one reason leads to the other and a brand is repositioned sometimes for a multiplicity of reasons.

12

A four-phased brand repositioning approach can be followed to achieve the Intended benefits:

Phase I. Determining the Current Status of the Brand Phase II. What Does the Brand Stand for Today? Phase III. Developing the Brand Positioning Platforms Phase IV. Refining the Brand Positioning and Management Presentation

The benefits that can be derived from brand repositioning exercises can be summarized as: 

Value over others



Updated personality



Relevant position



“Up to date” image

The risks associated with such strategies are: 

Loss of focus



Neglecting original customers



Losing credibility for the brand



Confusing the brand

13

Therefore, brand repositioning is more difficult than initially positioning a brand because one must first help the customer “unlearn” the current brand positioning (easier said than done). Three actions can aid in this process:

(1) Carefully crafted communication, (2) New products, packaging, etc. that emphasize the new positioning and (3) Associations with other brands

Co-branding, Co-marketing, Ingredient branding, Strategic alliances, etc. Those reinforce the new brand positioning.

This exercise is so critical to an organization‟s success that the organization‟s leadership team and its marketing/brand management leaders should develop it, preferably with the help and facilitation of an outside brand-positioning expert.

14

CHAPTER 2: RESEARCH METHODOLOGY

2.1 Objectives: 1. To review the brand positioning strategies of different sub-brands of Titan watches. 2. To analyze the brand repositioning strategies of Titan watches. 3. To study consumer awareness and perception about the brand repositioning Strategies of Titan watches. 4. To recommend suitable measures to be taken by the Titan Company to further Improve its brand perception and loyalty among its customers.

This study would help titan industry to understand the gaps in its communication strategy regarding brand repositioning exercises and the further measures to be taken for effective marketing communications.

2.2 Limitations: 

The study is confined to Navi Mumbai area only



There is possibility of sampling errors in the study



The responses of the consumers may not be genuine



The questions included in the questionnaire may not be comprehensive.

15

2.3 Sources of Data collection The relevant data was collected from both primary sources and secondary sources. The starting point of my information gathering has been the secondary sources such as internet, books, and journals and so on. First, I made a study of the brand positioning and repositioning strategies of Titan watches through secondary sources such as internet, insurance magazines, and journals and so on. Then I conducted a consumer awareness survey on brand repositioning strategies undertaken by Titan watches in recent times.

2.4 Sampling Procedure: A sample of 50 consumers who are brand loyal to Titan watches since more than a year and in the age group of 20 – 30 years have been considered for this study. As Titan has taken up brand repositioning strategies since July 2008, consumers who have seen the previous and new campaign have been targeted

2.5 Primary Data Collection: Data was collected through an interview schedule, consisting of both open ended and closed ended questions. The schedule covered parameters like reasons for consumers‟ brand preference; recollection of earlier tagline and advertisement, brand ambassador of Titan; awareness of new tagline and campaign featuring Aamir Khan, new designs and so on. The data was collected through e- mails, telephone contacts and one-to-one personal interviews.

16

CHAPTRER 3: INDUSTRY OVERVIEW

3.1 History of the Watch Market: The Indian watch industry began in the year 1961 with the commissioning of the watch division of HMT. The first watch model manufactured by HMT was the Janata model in the year 1962. HMT was the leader in the watch market till the Tata‟s formed Titan Watches in association with Tamil Nadu Industrial Development Corporation in the year 1987. They took a major strategy decision, which later changed the face of the Indian watch market- to manufacture only quartz watches. Liberalization in 1992 and the removal of quantitative restrictions due to WTO has opened the doors for many foreign brands in the Indian market viz. Tissot, Swatch, Omega, Rado, TAG Heuer, Rolex and many others. The import duties on watches are falling which makes the Indian market look attractive for the global majors like Casio, Swatch and Citizen.

17

3.2 Indian Watch industry: Figure 2. Porter‟s five forces model SUPPLIER POWER No strong suppliers Lack bargaining power Rise of China, Taiwan as low cost suppliers.

BARRIERS TO ENTRY Cluttered Market Lack of Differentiation

DEGREE OF RIVALRY Increased number of firms Low switching costs

THREAT OF SUBSTITUTES No close substitutes

Strategic stakes are high

BUYER POWER Price sensitivity , Buyers‟ Preferences

1. Supplier Power: 10. HMT has its own fully integrated operation for production of its watches. Titan has its own production facilities for which it has invested roughly 120 crore rupees over the years, the manufacturing capacity of which is 6 million units. Also there has been a rise of low cost producers in China & Taiwan which has provided an opportunity for watch makers to outsource watches at low cost, just as Titan has done to outsource the components for Dash. Due to the large supply of watch movements available, there is little supplier power in the watch market.

18

2. Buyer Power: The Indian watch buyers are very price sensitive, especially in the lower end of the market. There is still a huge untapped market in India with market penetration of only 20 units per thousand people while the world average is more than 100. At the same time there are a segment of people who are willing to pay a premium for watches with good performance and with a recognized brand name. So understanding the buyers‟ preferences is very crucial in this industry in order to gain a substantial market share.

3. Entry Barriers: The Indian watch market in the recent years has shown a dramatic increase in the number of brands available in the market due to removal of quantitative restrictions. So the new entrant has to have an offering, which can be positioned and differentiated from the other players in the market. This could be either price or functional or emotional appeal. So the prime barrier for entry, in the current context, for a new entrant is to build a brand image and price competitively.

4. Threat of Substitutes: There are no such substitutes to watch as a product. However, in terms of the companies offering various variations for watches such as pendant watches and jewellery watches, some sort of substitution has developed. Rich consumers prefer to purchase watches more as a fashion accessory rather than simply for its typical use.

5. Degree of Rivalry: There are many companies in the Indian watch market; however, the product ranges offered by them are manifold. This makes the competition very stiff. Also at the lower end of the market it is basically the Value for Money, which differentiates the players. The strategic stakes for the producers are very high. Titan Ltd., the largest company in terms of market share in the organized sector has faced losses in the quarter ended June 2001 despite increase in the market share due to macroeconomic situation. HMT faced a similar situation when Titan was introduced in the 1980s leading to a sharp fall in its market share.

19

3.3 Present Situation Of The Indian Watch Market:

The Indian watch market is today of 40 million units, out which 60% is in the unorganized sector in which the maximum number of watches are sold are below Rs.300. Quartz watches form two thirds of the organized sector and the rest is split between mechanical and digital watches. Even in the organized sector, three fourth of the sales by volume comes from watches that are priced below Rs.1000.

Plastic as such is not acceptable to average Indian consumers, especially those from the small towns and rural areas who regard it as cheap and flimsy. They want toughnesswhich translates into a good quality metal model at a reasonable price.

Watch is one of the consumer durables whose replacement rate is very high. The replacement rate of watch is 33.8 % (Source: India market demographics report, 1998). This is also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is applicable after 6 years (Source: India market demographics report, 1998). So due to high scrap rate, outdated models, and the shift from the mechanical watches to the quartz watches is causing a very high replacement demand for watches. These along with the low penetration levels represent the untapped market potential for watches in India.

3.4 Major Brands In India Watch Market: The major players in the Indian watch market include HMT, Titan and Timex. The other players include Westar, Shivaki, Maxima, and SITCO. Foreign brands such as Cartier, Piaget, Omega, Tiffany‟s and Corrum, Gucci, Longines, Casio, Citizen, Tag Heuer and Espirit are also making an inroad into the Indian market.

Titan has been consolidating its market share over the past decade. Timex watches, which entered in India with collaboration with Titan, now independently has also gained substantial market share.

20

3.5 Segmentation of Indian Watch Industry:

Based on price 1. Mass (Rs.350-600) 2. Popular (Rs.600-900), 3. Premium (Rs.900-1500), 4. Super-premium (Rs.1500-8000) 5. Connoisseur segments (above Rs.8000)

Based on user category 1. Men‟s watches 2. Women‟s watches 3. Youth watches 4. Kids watches 5. Sports watches

21

CHAPTER 4: TITAN WATCHES: BRAND POSITIONING STRATEGIES

4.1 Overall strategies: Since its introduction, Titan has been positioned as a premium brand, providing high quality products. With its numerous sub-brands catering to different segments, the challenge that Titan faces is to create a strong brand image. It follows different positioning strategies; these strategies can also be analyzed as given below:

4.2 Attribute Positioning Strategies: When the company launched its products, it was the first to bring quartz watches to the Indian market. The company successfully leveraged this to penetrate the market and gain 13.a market share. Raga, Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power dressing now has a new weapon! As Magic in gold and bicolour look, the 'Regalia' range represents the essence of dress-wear. Raga has been differentiated and positioned as exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique.

4.3 User Positioning Strategies: Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000 and Fast track range). The Fast track range is seen as being contemporary, sturdy and reliable. The advertising, packaging and merchandising of this range is young, vibrant and „cool‟ (the ad line says “Cool watches by Titan”)

22

4.5 Benefit Positioning Strategies: The Fast track Digital range offers the customer a functional watch that is also attractive. The digital watch has a “techno-geek” image, but Titan seeks to differentiate its offering on the basis of superior style and attractiveness.

4.6 Competitor positioning Strategies: With the entry of several foreign watchmakers into the market, Titan had to counter the threat. Most of the entrants are catering to the upper end of the market- Omega, Tissot, and Cartier etc. Titan already had the Tanishq brand in this segment. However, it has tried to reposition this brand by increasing the price range to encourage more customers.

4.7 Quality & Price Positioning Strategies: In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as „value- for- money‟: reasonably priced (less than Swiss watches and higher than Japanese), attractively styled and of good quality. In Indian market, Sonata is a perfect example of Price positioning, titan came up with this segment when it was facing heavy competition from lower end segment.

23

CHAPTER5: TITAN WATCHES: BRAND REPOSITIONING STRATEGIES

5.1 New Logo & Tagline – “Be More‟‟

Titan Industries decided to revamp its flagship watch brand, Titan, with the intention of making it more youthful and relevant to the changing times. The brand, launched more than 24 years ago, has undergone a major repositioning exercise only once before – five years ago, when Hindi film actor Aamir Khan was appointed brand ambassador. What followed later was the „What‟s Your Style?‟ campaign, which tried to increase watch consumption per person, by suggesting the use of different watches for different occasions.

Beyond Style Now, Titan wants to move from style statements to personality statements. According to Harish Bhatt, chief operating officer, watches, Titan Industries, a watch ought to denote the wearer‟s mood and personality. “With the explosion of options in a person‟s life, our core consumer is changing. And to keep up with them, Titan has evolved too,” he says. On the adoption of „Be More‟, Bhatt says that that statement is supposed to denote the aspirations of consumers to make more of their lives and be whatever they want to be. “The watch allows for such imaginative travels,” he says.

24

Titan‟s agency, Ogilvy India, has devised a campaign featuring Aamir Khan that encourages people to find a new strand of their personality every day. It all started with a logo change a few months ago (the same font in a red and white combination), followed by a campaign rolled out now. The ad film opens on a shot of Aamir Khan sitting alone on a roller coaster, stating, „Be born every day‟. Next, he is seen chasing the shadow of an aircraft on a beach, then, sitting beside a truck driver, in the middle of nowhere, with a trail of chassis trucks behind him. Here, he asks the viewers to try the adventure of getting off at an unknown station, of exploring unknown lands. As he crashes his vehicle while go-karting, Khan waves to the others around him, while his voiceover explains the importance of making one‟s own mistakes. Further on, he talks of not making your passport photos last longer than three months – you need to constantly reinvent yourself and adopt a new look every day (cut to shots of Khan‟s varied hairstyles and looks in his movies, shown in an ambient way through posters and T-shirts). “Shock your reflection!” says Khan, as we see him with funny accessories framing his face. The next vignette has him practicing meditation while slyly checking out a girl walking past („Explore‟). Cut to a shot of children, with Khan explaining how we aspired to be different people as kids – “let‟s revive that aspiration today”. Wearing amour (sword and all), Khan Reiterates, „Be Born, Every Day. Titan. Be More‟. Malvika Mehra, group creative director, Ogilvy & Mather Bangalore, says, “„Be More‟ pushes people to live many lives in one. We want to trigger people into questioning, „Why should we be single minded and boring? Time to be multi-faceted, just like Titan!‟”

Khan fit the bill as Ogilvy borrowed from his own life and work and his need to constantly experiment and reinvent himself. “Be it Mangal Pandey or Lagaan or Dil Chahta Hai, Aamir always manages to look different in every role,” explains Mehra. “So we showed him doing things that were spontaneous, such as exploring places or go-karting.” The idea, simply put, is to live life to the fullest – with Titan being the instrument of such expressive liberation.

25

5.2 The Ad Making – Aamir Khan:

The ad was directed by Prasoon Pandey of Corcoise Films; this is Pandey‟s third Titan film, the earlier two involved Khan and his assistant, played by the late Vihang Nayak. The first film had Khan confused about which watch to match with each outfit he‟s packing before a trip, while the second film showed him delighting a girl in a mall with a watch. “This third film has a much stronger script than those two,” shrugs Pandey. “It‟s about bringing a mindset onto the screen with a better celeb-brand marriage.” Shot entirely in Chennai, the film has been shot in a way that suggests that multiple locations were used for the shoot, as opposed to one city. “We had fast paced shots to spread the look of the film,” says Pandey. When asked why Chennai, he quips, “Because it was Raining in Mumbai then!” Several layers were added to the film. To show the aspirations of children, a young girl was shown staring at an object and, later in the frame, you see the object is a butterfly – the girl wants to fly. “Kids are freer in their thinking than adults and we hope this has been portrayed,” Pandey says. Even the last frame of the ad, which has Khan dressed as a mock warrior (with an impromptu utensil serving as his helmet), was made to look like the man had made use of things lying nearby in a spontaneous way.

26

5.3 Titan Raga Signs Katrina Kaif As Brand Ambassador 2012:

September 20th, 2011: Aiming to widen its appeal amongst Indian women, Titan, India‟s most preferred watch brand, today announced their association with Bollywood‟s most beautiful and charming Diva, Katrina Kaif. Ms. Kaif has been signed as the brand ambassador for their exclusive women‟s watch brand, Titan Raga. Incepted in the year 1992, Titan Raga has won the hearts of millions. Designed exclusively for women, these exquisite and elegant timepieces perfectly capture the essence of beauty, femininity and sensuality. The brand has grown over a period of time in sync with the evolving tastes of the contemporary Indian woman. Mr. Ajoy Chawla commenting on the brand said, “Driven by continuous launch of new designs and collections, Raga has witnessed a 27% CAGR in the last 5 years and will be Rs.400 crore brands this year! However, the potential in the women‟s segment is still huge as watch penetration even amongst SEC A/B women is still very low. A brand ambassador will help to make the watch a desirable accessory amongst women.” Further talking on their association with Katrina, Mr. Chawla said, “Titan Raga stands for beauty, femininity and sensuous self expression. While embodying these core values, Katrina also symbolizes the changing face of the successful, graceful and contemporary Indian woman.”

27

Talking about her association with the brand Katrina Kaif said, “(Smiles) Titan needs no introduction, this vibrant and „up-to-the-minute‟ brand has been touching our daily lives in the most beautiful way possible. It gives me immense pleasure and satisfaction to be associated with the most popular and only women‟s watch brand in the country. Besides being a timekeeper that helps me keep up with my busy schedules, it also adds to my style quotient. I feel watch designs from Titan Raga are truly exclusive and contemporary. I am really looking forward to the exciting days ahead with the iconic brand “Raga”, which embodies beauty, sensuality and femininity with great creativity.” As a brand ambassador of Titan Raga, the renowned actress will play a key role in shaping brand communication on television, print, outdoor and other media.

5.4 New Collections and Designs:

1. Sonata‟s sub-brand: Sonata has launched the Yuva 2008 collection, a series of colourful watches. They are available in both casual and formal styles to complement the young, new look for college or office wear. The collection has watches for both men and women at price s starting at Rs 645. They are available in both gold and steel looks, with both metal and leather straps. Sonata, the watch brand from the Tata‟s, launched the Super Fiber, targeted at the sub-Rs 500 market in urban, semi-urban and rural India.

28

The watches have been designed primarily for youth in the 16-30 age group, and will be available in a price range of Rs 275 to Rs 550. The tag line for this sub-brand is „Super Strong, Super Style.‟ The company announced 360-degree marketing campaign for the new offerings. It also unveiled its TV commercial featuring Indian ODI captain Mahendra Sing Dhoni, “in a brand new avatar”. 2. Titan Raga – Hazel Collection Titan Raga has launched the Hazel collection, inspired by the hues of nature. Priced between Rs 2,195 and Rs 4,000, this range comprises five styles with versions in gold, steel and bi-metal finish. They are available as bracelets and kadas with textured or patterned look and mother-of-pearl dials.

3. Octane Titan has launched the Octane collection of chronograph, multifunction and retrograde watches for the urban man. The range is described as blending style and technology. The collection has over 35 styles and is priced between Rs. 5,000 and Rs 7,500.

4. Nebula Celeste It is a limited edition collection of jewellery timepieces. They are crafted in 18k white and yellow gold. Prices range from Rs. 6 lakh to Rs. 12 lakhs.

5. Raga Crystals Titan Industries Ltd has unveiled its new Raga Crystals collection of watches in Kerala. The two new watches, called Venus and Fairy Dust, are available in yellow metal and bi-metal versions. Venus is priced at Rs 4,450 and Fairy Dust at Rs 4,750.

29

6. Titan‟s Stambha A new ladies Heritage wrist watch „Stambha‟ signifying fame, prosperity and good luck was unveiled as part of Heritage collection. Mr.Vijesh Rajan, Regional Sales Manager (South), launching the watch collection, said that plans are on the anvil to launch one new collection every month, reflecting the 3000-year old art and cultural history of the country.

A sale of around 7,500 watches has been fixed as a target for this fina ncial year in the Heritage collection, he added. The prices in the collection range between Rs 5,000 and Rs 10,000.

7. Nebula Zeus It is a mechanical automatic watch in solid gold for men. Priced at Rs.1, 10,000, the limited edition watch (500 pieces) harks back to an older era of luxury and romance. The Nebula Zeus watch has been crafted using Swiss made mechanical automatic movement with gold finish and a sapphire crystal back cover. Other features include an instant start, a second hand stop device for accurate time setting; 42 hours reserve powers and auto wind convenience. The watch collection was launched by singer and actor, Vasundhara Das. 8. Raga Shimmer It comprises of a collection of exquisitely designed studded watches that complement both Indian-wear as well as Western-wear. Priced between Rs 2,995 and Rs 4,495, the new collection comprises watches in gold, steel and bi-metal finishes.

9. Raga Diva An exquisite range of watches for women in the Kerala market. Inspired by traditional Kundan work, this collection has been rendered in a delightfully contemporary form. It is priced between Rs 4,000 and Rs 10,000. 10. Titan Nebula – Duet Collection Titan Nebula, the premium 18K gold watch brand from Titan, today launched the Duet collection – three pairs of specially crafted gold watches for the wedding season.The most premium collection for this wedding season was unveiled by popular actor Gul Panag.

30

OTHER STRATEGIES ·

Titan is also trying to reach new customer segments. They are now trying to target all adults in socio economic classes A&B.

·

Titan is also looking at innovative retail strategies and planned to launch ten innovative product collections soon.

5.5 Market share of the Competitor in Domestic Market:

Competitor in Domestic Market

Market Share

HMT

19%

Maxima

13%

Rado

7%

Casio

3%

The strongest selling point of Titan is that it is available and affordable. Titan provides watches for all segments, like from low-cost Sonata for first time user, Fast-track for the trendy young, Dash for the kids, and the higher priced Regalia and Nebula to the premium segment customer. The Indian watch market is estimated at 25 million watches a year, where the domestic sale is 6 million watches per annum. The rural segment is the diverse market in the present scenario. The key success story of Titan is capturing the rural market on a large scale. The range cost is between Rs. 495 to Rs. 1200. And the model is available exclusively in all showrooms and is sold mainly in small-town in India. Though, The Company faced enormous challenges from its big list of competitor, the company still in the number one position in domestic market because of the weakness of the competitor. The company becomes more reliable and more acceptances to the consumer because of its marketing mix. The company has adopted the new marketing innovation to improve the feature of the product by time to time. 31

Though the current financial environment is not in favor, but the company performing well and saw an increasing trend in the profit chart. The company trying hard to convert its weakness into strengths and threats into strengths and threats into opportunities by bring revolution in the product style, model, features, pricing policy, product quality, etc. Companies certain initiatives and policy such as new innovative design, guarantee, the research and development, wide dealer network, committed service team, discount and offers make the company.

32

TO FIND OUT THE BRAND PREFERENCE FOR WATCHES

Environment Analysis: A.

The Marketing Environment: 

Competitive Forces

Major Competitor There are lots of competitor in wrist watch segment which directly or in directly affecting the titan watches industry. The major players‟ are Domestic Level: ·

HMT

·

Maxima-quartz

·

Rado

·

Casio

 International level: ·

Espirt

·

Swatch

·

Citizen

·

Seiko

 Fashion Houses: ·

Dkny

·

Gucci

·

Adidas

·

Nike 33

Among all these competitors, Maxima-quartz and HMT are major players .The strength and weakness of the companies varies from segment to segment

Industry‟s Role As there have many competitor exists in this Industry, the competition is too much. Whenever any company bring changes in its marketing mix, all the companies also implement changes in their marketing mix to sustain in the competition. By that the structure of whole industry is changing and affects the competitive forces in the Industry.

34



Economic forces

Economic landscape: Indian corporate sector is nervous because of current Inflation. This problem occurred not only in India, but it affected all the countries due to United State financial crisis. As we came to know from Federation of Indian Chamber of Commerce and Industry (FICCI) that 64% of the 413 companies are running currently in worst condition from last 6 months. Consumers view: As we know that Inflation is in double digit figures, but the people who lives in urban area or metro city, are having optimistic view towards economy. People think that the economic condition of our country will be improved in the near future.

Purchasing power of consumers: Brand Name

Purchasing Power(Price)

Category

Rs. Fast Track

550-1,430

Exacta

595-1,430

Youth Lower Middle Class (Office Wear)

Spectra

650-1,830

Royal

960-2,830

Raga

1,420-4,000

Bandhan Regalia

1,675-8,085 1,725-7770

Common Class Upper Middle Class Upper Class Couples Upper Middle Class

Edge

4,500-5,200

Business Class

Nebula

10,000-45,000

Upper Class

35

The company‟s watch sales grew by 18.8 per cent and its income increasing from Rs255.34 crore during the second quarter of last year to Rs303.45 crore during the second quarter of this year. On the basis of the above table and profit figure we easily understand consumer buying power in target market. Spending habit of consumers: Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of Titan Industries doing well in the current fiscal. For these, watch segment sales income increased from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during the corresponding period this year. These data indicate that consumer‟s spending pattern is increasing respective target market. From the above information we can easily understand that consumers buying more of Titan wristwatch. There are few reasons behind the growth in sales of Titan .They is as follow.

 Brand name  Quality of the products  Features ,which differentiate from others  Attractive models  New innovation

36

 Political forces Political landscape: In 2004 /05 the new Government came through election in India. Our new Government took lots of steps to make the global relation as well as some steps to develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash Reserve ratio (CRR) as well as by decreasing the Repo rate. These all steps help the Industries to get sustain in the market. As all the steps help the Titan industry to compete in the watch industry. The performance of this sector for last few years are-

Relation with political officials: As we all know that TATA group is the one of reputed companies in the world, it really helps the country development. Moreover, the companies always want to make good relation with the political parties, because we know that India is a democratic country which is it- self elected by the people the country.



Legal and regulatory forces

As the titan industries operates their business in the global area, they have to follow lots of regulatory norms. The industry can be directly affected by the certain rules such as change in Taxation rate.

37



Technological forces

Impact of Technology: Changing in technology always play a great role in the target market. Titan decided to manufacture only QUERTZ (Analog and digital) and not mechanical and they would start plant to manufacture watches in wide variety in design and prices. Titan changes the technology in that ways which help in enhance the quality and the features to increase buyers‟ value. Titan gets advantages in the target market through innovative technology. As there is too much competition, if Titan not accept the changes in technology then they can‟t sustain in the market. In premium segment, competitor will capture whole market by improve technology. And in the mid-price segment, other companies will give a tough competition to titan. Technological changes: The new marketing innovation can bring a drastically changes in the marketing activities of the company. The new innovations which can differentiate the company from the competitor are

 Implementation of Heart-beat checking system in wrist watch.  Implementation of Blood pressure checking system in the wristwatch  Some companies can come with the watches which help in knowing the mood

of the person.

38

 Socio cultural forces Tata believes that improve the quality of the life of people and the employee is the primary purpose of their business. It uses its resources in the best possible way. They also takes some reasonably steps to improve the quality of life of the people of the areas in which they operates. Tata adopt the corporate citizenship index, tata business excellence model and tata index for sustainable development which reflect its commitment to its corporate social responsibility (CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives These CSR initiatives are spread across three core areas, such as employee welfare, the environment and the welfare of the community at large.

39

B.

TARGET MARKET Identification

The titan industry basically deals in three segments for its watches. They were as follow.  High income/elite consumers

In this segment mainly the consumer who buys a wrist watch as a fashion accessory.  Middle group:

In this segment mainly consumers are like some fashion in their watches. These consumers would not purchase a watch without comparing various offers in the market. Lower-income people: this segment mainly consisted of lower- income consumers who want watch mainly as the time –keeping device and purchase on the basis of price

No. Of Media

No. Of respondents

TV

46

Magazines

25

Newspapers

36

Hoardings

15

Radio

4

40

5.6 MARKETING MIX: ·

PRICE

·

PRODUCT

·

PROMOTION

·

PLACE

1. PRICE: As achieve our marketing our marketing objectives, we can do some change in the pricing. The main consideration will be in changing price are followings. A. Survival: In case of some of the watches titan prices them according to the features .The Exacta is a simple steel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga through pricing policy. B. Market share: As we know that 70% of sales in watches come from the lower segment, therefore by pricing Sonata at 350 onwards with guarantee. Titan prices its world watches which compared equal to an international players like Calvin Klien where a customer pays 4 times as value of the world watch, therefore market with low prices to international players to gain market share. C Market Skimming: In Indian watch industry there is no one offering pure gold watches, watches in pair jewellery watches. Here Titan offers there product with the Indian love.

41

touch in its design, the product, the

2. PRODUCT: Quality and leadership are the two main terms for the Titan. As to achieve the marketing objectives this aspects should also be considered.

A. Product line: To increase the sales, the differences in the prices of the watches are justified by the features.

B. Product pyramid: Portfolio of Titan‟s product is of 3 distinct price-range that can be defined in general, as Popular, Mid, and Premium. At the popular segment, the emphasis is on in volumes but not in margins. At the premium segment, the emphasis is on profits and image but not in volumes. Obviously, company giving more emphasis at the top of the pyramid as profits at the top of the pyramid is very high. This pyramid guided the strategy of Titan. C.Product strategy: Titan was first focused only on the premium segment of the watch market. As per the product strategy they took, Titan moved in to the mass market for watches. To widen base, Titan created new segments and increasingly focusing on segments individually. In the past few years Titan has took a lot of initiatives to focused on specific segments. D.Product Quality: Quality and leadership are synonymous to Titan. It seeks to achieve both through their value for products compared to their prices.

42

3. PROMOTION: Promotional pricing: A. Marketing pricing: As by opening new shops such as the world of Titan – buy directly from the dealer and hence the element of middleman is not there. Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they are able to get the 17% profit margin on sales. It is managing to successfully convince to the customer of the perceived value of „WORLD WATCH‟ using hoarding all around the city, increasing buyer image, trust worthiness, innovation, differentiation, value for the product. Price discount and allowances: Every year Titan comes with a price discount sale on the MRP of the watches. The allowance varies from one segment to another. a) Creative advertising: Titan introduces a contest on cartoon network in india.com which invites children to use creativity and design watch. The prize winning design was launched as a new watch in summer 2002 collection. Type of advertising: Titan believes in making its ads clean, well made, touch on emotional chord. As the company is using celebrities or superstars that is Amir Khan for the Titan watches. b) Promotion on occasion: Titan is one of the company which formally believes in the policy of promotion the product based on the occasions.

43

4. PLACE: Keeping in mind about the young trendy and fashionable consumers, Titan distribute its product and set up „world of titan‟ in different region. The consumer‟s life style in India, especially in urban area (because the turnover in urban area is 210 million, while the turnover in rural area is 90 million) plays a significant role in the success of Titan. A. Time Zone: Titan Industries brings together the country‟s leading watch brands under one roof, providing the customer with variety in brands, looks and price ranges and also efficient after-sales service. These 1142 Time Zones located across 89 towns which offer its customer the complete watch shopping experience.

B. Value Mart: These outlets sell surplus stocks of Titan watches at reduced prices. By doing these it offering fabulous value for money with the same warranty as a regular full-priced watch enjoy. However these shops would not be placed in the main locations and not working as a normal shops. This is to make the customer go to the shop rather than the shop calling the customer and hence the locations are not very suitable for shopping. C. Sonata Stores: A Sonata store is also an Authorized Service Centre for Sonata & Titan brands. Sonata store meet the large scale demand for the watch and also to attract customers in more. These shops had full stocks of the watch in demand whereas the others could afford to maintain only limited stock.

44

5.7 CONSUMER BUYING BEHAVIOR: Cultural Social Culture

Reference group

Subculture

Family

Social Class

Roles and statuses

Personal Age and life-cycle

Psychological

stage Motivation Occupation Perception Economic circumstances Lifestyle

Learning Buyer Beliefs and attitudes

Personality and self-concept

A. Cultural Factors ·

Value, perception, and preferences

·

Nationalities, religion, race, geographical regions

·

Social class

B.Social Factors ·

Reference Groups Social Class

·

Roles & Status

C.Personal Factors ·

Economics Circumstances

·

Occupation

·

Age & Life Cycle Stage

·

Lifestyle

·

Personality and self-concept 45

D.Psychological Factors ·

Motivation

·

Perception

·

Learning

·

Beliefs and attitudes

46

NEED ANALYSIS Consumers need: The demand and the need vary one market segment to another segment on the basis of prices & quality. The current need can be satisfied by the following ways in the different segment. High class: Titan offered Aurum and Royale in gold watch range .They were stylish watches in all gold and precious metals. The price is between Rs.20, 000 -1, 00,000. Middle income class: Titan offered the Exacta range in stainless steel. There were 100 different models in the range. The prices ranges are between Rs.500700. Lower-income group: Titan offered the Timex watches and later, when the arrangement with Timex was terminated, the SONATA range. The prices ranges were Rs.350-500.There was 200 different models in the ranges.

Current Marketing Objectives and Performance: Review of Marketing Objectives Current marketing objectives of TATA are to strengthen India‟s Industrial base through the proper utilization of resources like employee and materials. Besides, the company seeks to reach the height of excellence atmosphere which is free from fear and threat. Performance Analysis Titan Industries achieved significant growth during the year ended 2007-08. Watch segment sales also grew by 17.2 per cent to Rs 918.7 crore. All brands of the company have performed well and new introductions in gents‟ watches, the Raga Crystal for ladies.

47

5.8 STP ANALYSIS The STP Process:

SEGMENTATION: Dividing the market by grouping the customer with similar tastes and preferences into one segment is called is called “segmentation”. Segmentation help marketers understand the needs of different customers better and serve them with better value propositions. A market comprises of different consumers possessing innumerable tastes and preferences. Depending on their marketing approach and the nature of the products marketers can adopt different level s of segmentation. The levels of market segmentation are: ·

Segment Marketing

·

Individual Marketing

·

Niche Marketing

·

Local Marketing

48

A)

SEGMENT MARKETING: Marketers target more than one segment when it is not economically feasible to design products and services for individual segments. The focus of segmenting the market will be on providing enhanced service to the customer by offering customized products that will satisfy the needs and wants of customer in that particular segment to a large extent. Segmentation is also sometimes identifying, capturing and retaining potential new markets. TITAN PERSPECTIVE Titan has segmented its business into three main categories: Mass Mid-premium luxury

B) INDIVIDUAL MARKETING:

Individual Marketing is the extreme level of segmentation in which marketers focus on individual customers. TITAN PERSPECTIVE Titan has not applied this for its marketing. C) NICHE MARKETING:

A niche is more narrowly defined group, typically a small market whose needs are not well served. Marketers usually identify niches by dividing a segment into sub segments or defining a group seeking a distinctive mix of benefits.

TITAN PRESPECTIVE In a study conducted to study the customers of watch market, it is revealed that 42% of them are youth. So, TITAN tried to target this by: ·

introducing FAST TRACK

·

price offering from Rs 500(affordable)

·

watches with style statements 49

D) LOCAL MARKETING:

Marketing programs being tailored to the needs and wants of local customer groups. The prominence of local marketing has also become very dominant.

TITAN PERSPECTIVE All the products of TITAN are addressed to all the customers as a whole. Localized products are not available. But some products which are available in UK have some pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal Nehru, etc. so that the customers can identify the product with those dignitaries.

50

CRITERIA FOR SEGMENTING CONSUMER MARKET: Markets are mostly segmented on the basis of geographic, demographic and psychographic factors: Geographic segmentation: It calls for dividing the market into different geographic units such as nations, states, regions, countries, and cities. Demographic segmentation: In this the market is divided into groups on the basis of variables such as age, family, size, life cycle, gender, income, occupation, education, religion, race, generation, nationality, social class. These variables are the most popular basis for distinguishing customer groups. The following are some of the demographic variables used to segment the market: ·

Age and life cycle stage: Consumer wants and preferences change with age. These tastes and preferences are not constant and change with time.

TITAN PERSPECTIVE Titan markets its products for all following age groups: a) For the age group 12-20, brands like TIMEX, Sonata, etc. b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA, etc. c) For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL, REGALIA, BANDHAN, etc.

51

GENDER: Gender segmentation has been applied to clothing hairstyling cosmetics, wristwatches, magazines etc. There are certain brands, which are positioned exclusively for a specific sex. TITAN PERSPECTIVE Titan markets its product across: Sex (steel, regalia, nebula, fast track, technology, sonata, edge, flip) Gents (flip) Ladies (raga) Married couples (bandhan) INCOME: Marketers tend to segment product and services on the basis of income groups. Nowadays, companies have recognized the potential of lower end income groups and have started targeting them. TITAN PERSPECTIVE Titan offers its products with a price range to suit the different income groups such as: - Below Rs 500 - Between Rs (500-1500) - Between Rs (1500-3000) - Between Rs (3000-5000) - Between Rs (5000-10000) - Above Rs 10000

52

GENERATION Generation plays a major role in segmenting markets. Every generation is deeply influenced by various activities. Such influences deeply impact their product purchase pattern.

TITAN PERSPECTIVE Titan has many products to satisfy all the generations. And through constant innovation Titan developed many products for new generations like FAST TRACK, TECHNOLOGY, and FLIP etc

SOCIAL CLASS Social Class segmentation is influenced by customer choices of automobiles, interior decoration, clothing preferences etc. The tastes and preferences of the social class also change according to time. TITAN PERSPECTIVE Titan has realized the demand of the society and has marketed its products for each of the following social strata.

53

First segment: For this segment, watch is a fashion statement. Titan has ROYALE, AURUM, and NEBULA for this segment. These products have specialties like European leather, sapphire crystal, scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones.

Second Segment: For this segment also, watch is all about fashion but price does matter to them. In this range, Titan has RAGA, TECHNOLOGY, and FASTRACK etc. These products have digital technology & of trendy shapes. Always splash oomph on to your ward robes and smear danger on your look.

Third segment: For this segment, watch is just an device to show the time. They invest after a lot of thoughts. In this category, Titan has TIMEX, SONATA, KARISHMA, etc

54

PSYCHOGRAPHIC SEGMENTATION: Buyers are divided into different groups based on personality, values, belief, lifestyle, motivation, etc. People within the same demographic group can exhibit very different psychographic profiles. LIFESTYLE: People generally exhibit different lifestyle depending upon their income, social group etc. People usually buy the product which suit their lifestyle TITAN PERSPECTIVE According to the life style of people Titan has segmented it‟s product to fit the box. Like in the luxury section it has NEBULA, AURUM etc. In the mid-premium section RAGA, GOLD-STEEL, TECHNOLOGY, etc. And in the mass section, it has SONATA, TIMEX and KARISHMA.

PERSONALITY: Marketers can use personality variables to segment markets. They endow their products with brand personalities that correspond to consumer personalities. TITAN PERSPECTIVE Titan advertises its products by portraying movie stars as user of its products and it offers a lot of option to its customers. For example:In economy category, 60 products In luxury category, 26 products In sports & casual category, 76 products In fashion category, 99 products In formal category, 14 products

55

VALUES: Values affect customer behavior in the long run. Marketers can use values and beliefs to segment the markets. TITAN PERSPECTIVE Time has the same value for all irrespective of cast, creed and sex. Still, Titan successfully segmented its products according to customer values. But it is basically related to type of generation they are in to. So, the segmentation is also related to that.

56

BEHAVIORAL SEGMENTATION: Organizations can divide markets on the basis of behavior that consumer shows towards the usage of the products. Various variables for segmenting market on the basis of purchase behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc. OCCASIONS: Markets can be classified on the basis of various occasions that customers encounter because people need different products for different occasions. TITAN PERSPECTIVE Titan also offers occasion specific products like FormalNEBULLA, STEEL‟ RAGA, GOLD&STEEL, Dress wear – REGALIA, RAGA, GOLD&STEEL, ROYALE. FashionSTEEL, RAGA, GOLD&STEEL, FAST TRACK. 57

BENEFITS: Market is divided on the basis of the benefits customers seek from the products. Benefit segmentation can be used to position various brands within the same product category. TITAN PERSPECTIVE Titan product has benefits like: It provides the “TITAN WORLD” SERVICE CENTRE in 174 towns. It provides a huge product range to choose from. Its products have good life cycle. ·

Usage Rate: The usage rate of a particular product/service can be divided into heavy, medium and light. Marketers are usually attracted to heavy users than other type of users.

·

Loyalty Status: The loyalty status of a particular market can be divided into different groups, according to the intensity of their loyalty to these brands.

58

MARKET SEGMENTATION PROCEDURE It is a three step procedure: 1.

Service stage: Here the researcher conducts exploratory interviews and focused groups to gain insights into consumer motivations attitudes and behaviors.

Then the researcher prepares a questionnaire and collects data on attributes and their importance ratings, brand awareness and brand ratings, product usage patterns, attitudes towards product category and demographics, geographic, psychographics and media graphics of the respondents.

2.

Analysis Stage: In this the researcher applies factor analysis to the data to remove highly correlated variables then apply cluster analysis to create specific number of maximally different segments.

3.

Profiling stage: Here each cluster is profiled according to its distinguishing attitudes, behavior, demographics, psychographics, and media graphics and media patterns. Each segment is given a name depending on its dominant characteristics. Market segmentation should be redone periodically because they change.

59

EFFECTIVE SEGMENTATION: For effective segmentation, segmentation variables need to exhibit certain characteristics. These are discussed below: ·

Measurable: The variable used for the segmentation of the markets should be measurable to be effective. For example, a variable like the purchasing power of potential customer is measurable.

·

Substantial: When dividing the market into segments, a marketer should take enough care to see that each segment consist of adequate number of customers worth catering to.

·

Accessible: The segment of the market that a marketer is trying to target should be accessible to him. The appropriate selection of the media, its coverage and other factors like the product distribution facilities play a major role in a marketer becoming accessible to customers.

·

Differentiable: Each segment of the market should be different from others in terms of its needs and wants. Each segment requires different marketing strategies because it responds to different strategies differently.

·

Actionable: A segmentation variable should help marketers develop effective marketing programs to attract and serve potential customers effectively.

60

TARGETING: It is the second stage of the Segment “Target” Position (STP) process. After the most attractive segments are selected, a company should not directly start targeting all these segments. The attractiveness of the segments is also depending on other important factors. In the main activity of defining a target market, four sub activities are given which are the bases for deciding on which segments will actually be targeted. The four sub activities within targeting are: 1. Defining the abilities of the company and resources needed to enter a market 2. Analyzing competitors on their resources and skills 3. Considering the company‟s abilities compared to the competitors‟ 4. Deciding on the actual target markets.

After the market has been separated into its segments, the marketer will select a segment or series of segment and „target‟ it/them. Resources and efforts will be targeted at the:

61

A)

The first is the single segment with a single product. In other word, the marketer targets a single product offering at a single segment in a market with many segments. For example, Titan‟s sub brand, Raga is targeting the upwardly mobile ladies in the upper premium segment.

B)

Secondly, the marketer could ignore the differences in the segments, and choose to aim a single product at all segments i.e. the whole market. For example, Sonata and Fast track brands of Titan are targeting mass and mid premium segment.

C)

Finally, there is a multi-segment approach. Here a marketer will target a variety of different segments with a series of differentiated products. For example, Titan itself provides with the number of different brands/products which are targeting different segments in the market. Following is the table which represents the various sub brands and their targeted segments of TITAN.

62

POSITIONING

Introduction: The importance of an image has become an emotional part of everyone. A brand name represents the image, character and personality of a brand. A brand name should be clear, lucid, easy to remember, distinct from the competition and should not be generic to the category. It should become customer's Top of the mind brand (TOMB). Most successful brand names would satisfy these criterions to quite an extent. Brand loyalty is one thing which has made the branding more popular. As someone rightly said "Brand loyalty is not dead, it's just more like loyalty to a girl/boyfriend than loyalty to a husband/wife". Vast flow of names today makes a brand harder to differentiate them unless they come out with their own uniqueness. This way, they could come to their special position in everyday life. The image following a particular name is also determined by the role of communication it undergoes; of which the followings are included: its manner, personality, behavior, ethics, values, etc. The importance of brands depends on the true ambitions of the company. The increasing spread and domination of international brands has seemed inevitable for at least the last 30 years. All around the world we have witnessed the disappearance of local brands and local variants.

But despite this trend, local and regional brands still remain strong. In India, for example, protected for many years by government policy from the invasion of foreign brands, homegrown brands dominate many sectors - Tata automobiles and Titan watches, to name but a few. In the end people want both global and local brands - brands that make them feel part of wider international community and brands that root them in their home culture.

63

Why are brands so important? Strong brands help a company to maintain market share in the face of a changing competitive environment and it has been shown that a strong market share is associated with aboveaverage profits. Brands have become assets in their own right. In addition, they represent low-risk opportunities for the manufacturer or service provider and they also represent reduced risk for the consumer.

What is meant by brand positioning? Positioning is statement that shows how you are different, better or more special than your competition. Position is that one thing that one descriptive sentence or slogan the company is known for that one specific idea that first comes to mind about the product. It is that one characteristic that sets the service apart from competitors. For Volvo that one thing is “Safety.” McDonalds is “A fun place for kids.” In Jakarta, Indonesia, Bluebird is “The safest way to travel by taxi.”

Why brand positioning is important? We need to be clear about why it is important to position a brand-and exactly what a brand is. As consumers, we are all influenced by the effects of a powerful brand positioning"brainwashed," so to speak-to have preference for one versus another. But today there are so many choices for consumers that this term has a secondary derivation-"whitewashing."

That is, the brand choices are so varied and the differentiation so minimal in terms of product functionality that we're faced with a sea of indiscernible offerings.

This is why it is critical for a brand to be well positioned and uniquely differentiated.

64

What does the result of brand positioning research show? The market position of a brand shows where a specific brand is located. It also shows the relationship to competitive brands. We can determine the market position of a brand on the basis of the answers to the following four questions:

1. Why (which benefits and advantages does the new brand bring to the consumer) 2. When (determining the opportunities for which the brand is most suitable) 3. For whom (it is about the determination of the consumer of a brand or target group) 4. Against whom (determining the main competitive brands)

TITAN PERSPECTIVE

a. Titan initially pioneered the concept of "Gifting watches". The ads captured the

essence of gifting and along with the trendy music, easily caught the imagination of the market. b. Customers who were fed up with ugly time machines welcomed the brand and Titan

had a dream run for many years. Titan then moved away from gifting. Titan was positioning itself as a fashion accessory rather than a time keeping device. Titan also found its persona in Mr. Aamir khan which provided the much needed edge to the brand. Titan was careful in keeping the brand above the celebrity. The ads were fresh and neatly executed. The idea was to make watches that would be seen as style and fashion accessories rather than just utilitarian devices. The company decided to use Aamir in brand and product communication on television and in the print and outdoor media. Though, the vast distribution and service network of TIL had served as an effective entry barrier in the 1990s, foreign brands were becoming increasingly popular in the early 2000s, thanks to the paradigm shifts in the retail scenario and the growing affluence of the Indian consumers.

65

And TIL found that it was not safe even at the bottom of the pyramid. The grey market with cheap Chinese imports and the unorganized sector had cornered a sizable chunk of the low-end market. The appointment of Aamir Khan as brand ambassador for the Titan brand was seen as an attempt to broad base the appeal of the Titan brand.

c. Titan also was pushing another strategy. Watches were perceived as a onetime buy

and consumers seldom owned multiple watches. So Titan pushed the concept of "Matching Watches to Clothes" in the recent commercials. Since men are becoming more serious customers of fashion accessories, this is strategy that is worth trying out. For Titan, even if the concept fails, It has created the much needed freshness in the brand. d. Earlier Fast track was targeted at 20-25 year olds and positioned along the line "Cool

watches from Titan". Then the company found out that the youth in the age group of 11-20 years account for 42% of watch buying in India. Based on this insight, the company relaunched the brand lowering the target segment to 18-30 year olds with the baseline “How many you have?". Again the strategy aimed at promoting the multiple watch owning concepts. Fastrack also launched a range of fashion accessories like Sunglasses trying to be a lifestyle brand.

66

CHAPTER 6 – COMPANY PROFILE 6.1 Overview: Titan Industries was established in 1984 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. The company brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling, manufactured in a state-of-the-art factory at Houser, Tamil Nadu. Leveraging its understanding of different segments in the watch market, the company launched a second independent watch brand-Sonata, as a value brand to those seeking to buy functionally styled watches at affordable prices. In addition it focused on the youth with its third brand – Fastrack. It has also premium fashion watches by acquiring a license for global brands such as Tommy Hilfiger and Hugo Boss, while. It has also in its portfolio its first Swiss Made watch brand – Xylys. In 1995, the company diversified into jewellery under the brand – Tanishq to capitalize on a fragmented market operating with no brands in urban cities. In 2005, the company launched its second Jewellery brand, Gold Plus, for capitalizing on the opportunity in small towns and rural India. The company has now diversified into fashion Eyewear by launching Fastrack EyeGear sunglasses, as well as Prescription Eyewear. The Company leveraged its manufacturing competencies and branched into Precision Engineering Products and Machine Building from 2003. Today Titan Industries is India's leading manufacturer of watches and jewellery employing 3,800 people. Titan and Tanishq are among the most admired brands in their categories.

67

6.2 PRODUCTS:

The company manufactures over 8 million watches per annum and has a customer base of over 80 million. It has manufacturing and assembly operations at Hosure, Dehradun, Roorkee and Baddi in Himachal Pradesh and an ECB plant in Goa. Its main products are:

1. Watches: Currently manufactures four main watch brands viz.  Titan for the premium segment,  Fast track – focused on the youth and trendy fashion space,  Sonata for the mass market and  Xylys for the premium market. The Titan brand architecture comprises several sub-brands, each of which is a leader in its segment. Notable among them are:  Titan Edge – The world's slimmest watch which stands for the philosophy of "less is more";  Titan Raga – the feminine and sensuous accessory for today's woman,  Nebula - crafted in solid gold and precious stones and several other collections like Wall Street, Heritage, Regalia, Octane, Orion, Diva, Zoop, WWF and the Aviator series, all of which form a part of the Titan wardrobe. Sonata is today India's largest watch selling brand and is priced between Rs 295/- and Rs 1200/-.  The company's first Swiss Made watch – Xylys is for the hi-end connoisseur and new age achiever. It also markets Tommy Hilfiger watches under a licensing arrangement and is introducing Hugo Boss. Today, the Titan portfolio has about 65% of the domestic market share in the organized watch market. The company has 225 exclusive showrooms christened 'World of Titan', making it amongst the largest chains in its category. Titan watches are sold through over 12,000 outlets in over 2,500 cities and internationally in over 30 countries, primarily in the Middle-East and Asia Pacific 68

2. Jewellery: Tanishq is India's largest and fastest growing jewellery brand with a premium range of gold jewellery studded with diamonds or colored gems and a wide range in 22kt pure gold. Platinum jewellery is also a part of the product range Tanishq is one of India's largest specialty retailers and is transforming the jewellery market in India 102 boutiques in 72 cities across the country. „Gold Plus' is the recent retail offering for the mass market with plain gold jewellery selling through 19 stores in 19 towns. The jewellery division has its own design studio.

3. Eye wear: Titan Eye+ is currently on a pilot mode with 5 stores in 2 cities and has sunglasses under Fastrack brand and prescription eyewear consisting of Frames, Lenses, Sunglasses, Accessories and Contact Lenses of in-house brands and other premium brands.

69

6.3 PRECISION ENGINEERING The company's Precision Engineering Division supplies precision components to the avionics and the automotive industry. It also manufactures dashboard clocks as OEM to car manufacturers in Europe and America. The division also provides fully integrated Automation solutions

6.4 AWARDS The company has been awarded the following distinctions: ·

Being named the No.1 Brand in the Consumer Durables category in the "Brand Equity" Survey of The Economic Times, a leading Indian financial daily.

·

The Titan Design Team won the Young Design Entrepreneur of the Year award at the design awards instituted by the National Institute of Design and Business World, a leading Indian magazine. The team has won 7 accreditations also.

·

Both Titan and Tanishq have been adjudged "Most Admired Brands" as well as "Retailer of the Year" by Images Fashion Forum in consecutive years.

·

Retail Asia and Media Magazine – Singapore adjudged Titan Industries as amongst the leading Retailing Companies in India.

·

Titan has won the Brand Leadership award at the India Brand Summit. The Time Products Division of the company was awarded the JRD QV Award in 2006.

·

70

CHAPTER 7- DATA COLLECTION AND SURVEY ANALYSIS 1. Which sub-brand of Titan watches do you possess?

Figure 1: Titan sub-brands possessed by respondents

Table No1: Titan sub-brands possessed by respondents S.NO.

Sub Brands

Percentage %

1

Fastrack

72

2

Sonata

14

3

Raga

6

4

Nebula

4

5

WWF

2

6

Edge

2

Survey Analysis: Titan sub-brand owned This was a multiple choice question where respondents were asked to choose subbrands of Titan which they possess. It was found that around 72% of the consumers in the age group of 20-30 years possess Fastrack brand, 14% Sonata, 6% Raga, 4% Nebula and only 2% own WWF and Edge.

71

2. Since how many months / years have you been using Titan watch?

Figure 2: Period of Titan watch‟s use Table No2: Period of Titan watch‟s use S.NO.

Period Of Usage

Percentage

Years

%

1

2001-2004

64

2

2004-2007

24

3

2007-2010

12

Survey Analysis: Period of use The respondents were asked to mention since how long they have been brand loyal to Titan. This was an open ended question and hence various responses were received. The minimum period of use was set as one year, as mentioned earlier, while the maximum period of use was determined. For convenience, the different responses are categorized into three: 2001year – 2004years, 2004years – 2007years and 2007years – 2010years.64% of the respondents fall into first category, i.e., they are using Titan watch in the range of one to four years. 24% respondents are in second category and the rest 12 % are using it for more than seven years. 72

Q3.Why do you prefer Titan brand?

Figure 3: Reasons for brand preference

Table 3: Reasons for brand preference S.NO.

Reasons

No. of respondents (out of total 50)

1

Attractive designs

39

2

Reasonable Price

7

3

Brand image

22

4

Good quality

25

Survey Analysis: Reasons for brand loyalty The respondents were asked to select the reasons from the options given for their preference for Titan watches. For this question, multi-responses were received.

73

4. Do you remember the original tagline of Titan watches? If yes, please mention.

Figure 4: Recall of Titan‟s original tagline Table No 4: Recall of Titan‟s original tagline Recall of Titan‟s Tagline

S.NO.

Percentage %

1

YES

22

2

NO

78

Survey Analysis: Recall of Titan‟s tagline Titan‟s tagline, before brand repositioning exercise has been undertaken, was “What‟s your style”. This tagline was adopted during first rebranding exercise in 2004. The respondents were asked to indicate whether they remember the tagline in dichotomous way, i.e., as “yes” or “no”. It was found that only 22% of the respondents were able to recall the tagline and the remaining 78% answered in negative.

74

5. Have you seen the advertisement of Titan watches? In which media have you seen the

advertisement?

Figure 5: Major Advertisement media

Table No.5 Major Advertisement media S.NO.

Major Advertisement Media

No. of respondents (out of 50)

1

TV

46

2

Magazines

25

3

Newspaper

36

4

Hoardings

15

5

Radio

4

Survey Analysis: Titan‟s advertisements Titan advertises its watches in almost all media vehicles. The advertisements can be seen in TV, magazines, newspaper, hoardings, billboards, radio and so on. All the 50 respondents have seen the advertisements of Titan watches in various media. This was a multi-response question and the options given to select were restricted to TV, magazines, newspapers, hoardings and radio.

75

Figure 6: Awareness of brand ambassador

Figure 6: Awareness of brand ambassador

Table No 6: Awareness of brand ambassador S.NO.

Awareness of Brand Ambassador

No. Of Respondents (out of 50)

1

Don‟t know

4

2

Correct responses

46

Survey Analysis: Brand Ambassador of Titan Aamir Khan is the brand ambassador of Titan since 2004. When the respondents were asked to recollect the same, it was found that 46 of 50 sample size were able to correctly mention the brand ambassador while the remaining 4 did not give any response implying that they are not aware of it.

76

7. Are you aware of the new tagline of Titan?

Figure 7: Awareness of new tagline

Table No 7: Awareness of new tagline S.NO.

Awareness of new Tagline

Percentage %

1

Aware

36

2

Not Aware

64

Survey Analysis: Awareness of new tagline – “Be More” The survey has revealed that less than half of the total numbers of respondents are aware of new tagline. 36% of the respondents could correctly mention the tagline while the rest are not even aware that Titan has adopted major rebranding strategies last year.

77

8. How do you rate the new designs of Titan?

Figure 8: Consumer perception of new designs

Table No 8: Consumer perception of new designs S.NO.

Consumer Perception

No. of Respondents (out of 50)

1

Poor

-

2

Average

4

3

Above Average

-

4

Good

39

5

Excellent

7

Survey Analysis: New designs of Titan Titan has launched several new designs in 2008 in its existing collections and as per its plans introduced new product collections also. The respondents were asked to rate the new designs as “poor”, “average”, “above average”, “good” and “excellent”.7 respondents feel that their designs are “excellent”, 39 have rated them as “good” and 4 have rated as “average”.

78

9. Have you seen the new campaign of Titan?

Figure 9: Awareness of new campaign

Table No 9: Awareness of new campaign S.NO.

Awareness Of New Campaign

Percentage %

1

Aware

50

2

Not Aware

50

Survey Analysis: New Campaign of Titan The survey has revealed that the percentage of respondents who have seen the new campaign focussing on “be more” featuring Aamir Khan is 50%.

79

10. Do you think the new advertisement is effective in inspiring consumers to have a new look everyday and be more in lives?

Figure 10: Consumer perception of new campaign

Table No 10: Consumer perception of new campaign S.NO.

Consumer Perception Of New Campaign

No. Of Respondents (out of 25)

1

Not at all effective

-

2

Effective

16

3

Highly Effective

9

Survey Analysis: Rating of New Campaign The 50% of the respondents who have seen the new campaign were asked to rate it with respect to how effective the campaign is in inspiring consumers to have a new look everyday and be more in lives. The respondents were asked to rate it as “not at all effective”, “effective” and “highly effective”. 16 out of 25 respondents consider the new campaign to be “highly effective” while the remaining 9 rated it as “effective”

80

11. How do you rate Titan’s exclusive showrooms?

Figure 11: Consumer perception of store ambience

Table No11: Consumer perception of store ambience S.NO. 1 2 3 4 5

Store Ambience Poor Average Above Average Good Excellent

No. Of Respondents (out of 50) 7 36 7

Survey Analysis: Titan’s exclusive showrooms The respondents were asked to rate Titan‟s exclusive showrooms on 5 point rating scale – Poor, Average, Above Average, Good and Excellent. The factors related to showrooms that were provided to the respondents for rating are – store ambience, sales personnel, after sales service and display of watches. 36 of the 50 respondents have rated store ambience as “Good” and 7 each rated as “Above Average” and “Excellent”. This proves that store ambience plays an important role in consumer perception of service quality. 81

12. How do you rate Titan’s showrooms sales personnel? Figure 12: Consumer perception of sales personnel

Figure 12: Consumer perception of sales personnel

Table No12: Consumer perception of sales personnel S.NO.

Sales personnel

No. Of Respondents (out of 50)

1

Poor

4

2

Average

4

3

Above Average

7

4

Good

35

5

Excellent

-

Survey Analysis: Sales Personnel With respect to sales personnel, 35 respondents rated them as “Good”, while 4 each rated as “Poor” and “Average”, 7 respondents gave rating of “Above Average”. 82

13. How do you rate after sales service of titan? Figure 13: Consumer Perception about after sales service

Figure 13: Consumer Perception about after sales service

Table No13: Consumer Perception about after sales service S.NO.

After Sales Service

No. Of Respondents (out of 50)

1

Poor

7

2

Average

4

3

Above Average

4

4

Good

31

5

Excellent

4

Survey Analysis: After sales service In the survey, 31 out of 50 respondents rated after sales service as” Good”, 4 each as “Average”, “Above Average”, “Excellent” while 7 respondents rated as “Poor”.

83

14. What is your perception about display of titan watches? Figure 14: Consumer perception of Display of watches

Figure 14: Consumer perception of Display of watches

Table No14: Consumer perception of Display of watches S.NO.

Display Of Watches

No. Of Respondents (out of 50)

1

Poor

-

2

Average

4

3

Above Average

-

4

Good

24

5

Excellent

22

Survey Analysis: Display of Titan watches Most of the respondents have given high ratings to the display of watches in Titan showroom. 22 respondents rated it as “Excellent”, 24 respondents as “Good” and only 4 respondents gave rating of “Average”

84

15. What is your overall perception about Titan showrooms? Figure 15: Overall perception about Titan showrooms

Figure 15: Overall perception about Titan showrooms

Table No15: Overall perception about Titan showrooms S.NO.

Titan Showrooms

No. Of Respondents (out of 50)

1

Poor

-

2

Average

-

3

Above Average

-

4

Good

30

5

Excellent

20

Survey Analysis: Overall perception about titan showroom The respondents were also asked to give overall rating to Titan‟s exclusive showrooms. It was found that out of total 50 respondents, 30 rated as “good” while the remaining considered the showrooms to be “excellent”. Around 50% of the respondents rated all the variables related to Titan‟s exclusive showrooms as “good”. This shows that the store ambience, sales personnel, after sales service and display of watches in the showrooms play a major role in determining the customer perception about brand.

85

7.2 FINDINGS OF THE SURVEY The findings of the consumer awareness survey are listed below:  72% of the respondents in the age group of 20 – 30 years possess fast track watch.

This shows that the positioning strategy of these watches has been good.  Most of the consumers prefer Titan watches for their attractive designs and good

quality. However, there is a misconception about pricing of Titan products among the consumers. They perceive them to be high priced.  Logos and taglines are rarely noticed by the watch consumers. Hence, any change in

them also goes unnoticed.  Advertisement in mass media such as television, newspapers, and magazines are best

means to spread awareness about brand.  Celebrity endorsement of watches not only increases the visibility of the product but

also gives an assurance to the consumers that it is of high quality.  Titan watches‟ designs are rated as “good” by 78% of the respondents. This indicates

that they are looking forward for more innovative designs to be introduced by the company.  Only 50% of the respondents have seen the new campaign launched by Titan watches

in July 2008. This implies that the reach of the campaign in six months has been to more or less half of the consumers. However, those who have seen the new campaign consider it to be effective in conveying the message it intended to deliver, i.e., to “be more” in lives.  The after sales service and behavior of sales personnel have been given low ratings

compared to other variables mentioned in the questionnaire with respect to Titan‟s exclusive showrooms.

86

CHAPTER 8– DATA INTERPRETATION In India 70% of the sales in wristwatches come from the lower segment. So, Titan captures the market by pricing the Sonata at Rs. 350 onwards. It consists of Tata guarantee. Titan prices its world watches which are compared equal to an international competitor like Calvin Klein. Here a customer pays about 4 times a value of the world watch hence penetrating the market with low prices to international players to gain market share. In the Indian watch industry there is no one offering pure gold watches, watches in pair, Jewellery watches. This concept though exists with foreign competition has just come to India. TITAN offers these products with the Indian touch in its designs, the products, and the looks. Hence it is able to skim the market with certain products in these ranges.

87

8.1 SWOT ANALYSIS:

A. Strength 1. Style: Titan first introduced the „style‟ concept in India and projected the watch as a fashion accessory. Now a day‟s style is a very much evident factor among the youth. And there is a craze for stylish wristwatch. So, Titan makes the peoples life more glorious by making stylish wristwatch. 2. Models: As Titan offers the best and the biggest range to customer to choose the watch of their choice with an affordable price. It offers about 14 different names with about 1000plus different varieties with a watch for literally everyone. 3. Exclusive products: Today Titan holds the pride for say that its products both within the country and internationally running in battle position. Its EDGE the slimmest watch in the world position.

Other than these there have few more strength likeContribution of owned brands and retail. The profit is accounted by being in the retail space which is booming. Watches are available with popular functions like dates, multifunction and chronographic. Guarantee/warranty

88

B. Weaknesses 1. Pricing:

The average price of Titan in mid-price segment is very high than the other competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In the mid-price segment the company is not performing up to the mark due to the lack of choice of consumers.

2. Market share:

As the average price of Titan wristwatch is far more than the other competitor, Titan has less market share. The market is more demonstrate by middle class people and for them Titan is quite costly. Among 75% market share in mid-segment. Titan market share is between 18-20% which is far lower than HMT and Maxima.

3. Globalized:

As the company is Indian based which leads it to the strength, where as it is the weakness also because the company not sufficiently globalized.

89

C. Opportunities 1. Seasonality:

At the time of festival, like Diwali Titan promotes Nebula, Bandhan because there is demand for the products.

- Gold watches and pairs are the like as a wedding occasion. -The fast track brand is promoted in month of June-August when schools and colleges re-open. 2. Gifting concept: Titan started as a brand which was associated with gifting and relation. The fight concept sells well for people have come to associate Titan with love care and makes emotion run high.

3. Exchanging offer: The Titan stores offer exchange offer of any old watch, of any make, in any condition functional or otherwise and receive a flat discount of 25% on their purchase of a brand new, stylish and technologically advanced watch from Titan.

90

D. Threats 1. Competitor: As we know that lots of foreign brands are entering in our country with their branded watches. As the removal of quantitative restrictions on import watches leads to threat to titan.

2. Premium segment: As in premium segment Titan is getting threats from reputed international brand such as Espirit, Swatch and Citizen.

3. Mobile: Now a day‟s people can get the time and the other feature in mobile phone. So, the need of wristwatch is in decreasing trend. People can talk and see the time in a cell phone and some people think that there is no need of wristwatch.

4. Marketing Objectives: Titan industries in watch hold 70% in domestic level and 60% in Share in organized sector market. Companies the marketing objectives is to increase in market share by 5%.Before implementing the of marketing strategies we must have to focus on certain things, which include the BCG Matrix representation.

A Titan industry has registered an Income of Rs.1, 104.85 crore as compared to previous year which was Rs 7, 25.11. In all the income the Titan industry had contributed Rs.3, 03.45 crore.

91

CHAPTER 9- CONCLUSION  To increase its visibility, Titan Company can sponsor events similar to fashion shows in which all latest designs launched are displayed. This would have multiplier effect as the latest designs launched by the company get noticed by different segments of the customers in varied ways.  Tie up with FM radio channels for reminder advertisements and informing customers about various sales promotion offers from time-to-time.  Invest more in R&D as customer expectations are changing rapidly. Though Titan has got more product collections, it should focus on introducing more varieties in already existing product collections. In other words, having a limited but more depth in product collections would be more advantageous.  Introduce exclusive collection for working women which is more contemporary and complements both traditional and western wear.  Majority of the population in India live in rural areas. So, showrooms should be set up at places nearer to them. Introduce cheaper and rough use watches for this segment.  After sales service has to be improved. That is, the process of servicing and repairing of watches should be made faster. This can be done by ensuring the spare parts availability and training all sales personnel in Titan showrooms to undertake these tasks.  Tie up with international watch brands and make them available locally.  Make use of internet to spread awareness among consumers about the brand.

92

CHAPTER 10

SUGGESTIONS AND RECOMMENDATION Suggestions given by the respondents to improve brand image.

Varied responses were received for this question. All the responses have been summarized as follows:

-Introduce more trendy and innovative designs -Focus on niche markets such as working men and women -Spread awareness about availability of watches in lower segments as most of the consumers feel that Titan brand is synonymous with premium watches -Take steps to change consumer perception that Titan watches are high priced. -Improve after sales service.

93

QUESTIONNAIRE 1. Which sub-brand of Titan watches do you possess?

a) Fast track b) Sonata c) Raga d) Nebula e) Others, please specify…………………………….

2. Since how many months / years have you been using Titan watch?

3. Why do you prefer Titan brand?

a) Attractive designs, b) Reasonable price c) Brand image d) Good quality

4. Do you remember the original tagline of Titan watches? If yes, please mention.

94

5. Have you seen the advertisement of Titan watches? In which media have you seen the

advertisement? a) TV b) Newspaper c) Magazines d) Hoardings e) Radio

6. Who is the brand ambassador of Titan watches? 7. Are you aware of the new tagline of Titan?

a) Aware b) Not aware 8. How do you rate the new designs of Titan?

a) Poor b) Average c) Above Average d) Good e) Excellent

9. Have you seen the new campaign of Titan?

a) Yes

b) No

95

10. Do you think the new advertisement is effective in inspiring consumers to have a new

look everyday and be more in lives? a) Not at all effective b) Effective c) Highly effective

11. How do you rate Titan‟s exclusive showrooms with respect to the following:

(1–Poor, 2-Average, 3-Above Average, 4-Good, 5-Excellent)

a) Ambience

-

b) Sales personnel

-

c) After sales service

-

d) Display of watches

-

e) Overall showroom

-

96

BIBLIOGRAPHY

Marketing Management – Philip Kotler Special Studies in Marketing- Romeo S. Mascarenhas

97

WIBLIOGRAPHY

www.titanwold.com www.tata.com/titan www.google.com www.indianfoline.com www.economictimes.com

98